The Broadcom Acquisition of VMware: Implications for Non-Invited Customers

The Broadcom acquisition of VMware, a landmark event in the tech industry, has brought significant changes, especially in terms of VMware's licensing and partnership programs. These changes not only change the landscape for VMware's offerings, but also impede their existing customer base, especially those not invited (you read that right) to join Broadcom's new, more exclusive, partner ecosystem. This shift has an enormous, disruptive impact on the way organizations might plan their future infrastructure strategies, potentially considering alternatives like Microsoft Hyper-V.

MSP's that prioritize Hyper-V over VMWare, like Superior Managed IT, will navigating this transition for new and existing customers who may not be ready for a full shift to cloud computing by offering expertise and support to ensure a smooth migration. Below, we discuss the details of this acquisition, the Broadcom (VMWare) licensing changes, and the strategic pivot organizations might need to consider.

The Broadcom-VMware Acquisition

Broadcom's acquisition of VMware introduces a significant pivot in VMware's operational and strategic orientation. This move is not just a change in ownership, but a strategic shift towards subscription-based models and a simplification of VMware's previously complex product portfolio. This transition aims at streamlining operations and making VMware's offerings more competitive in the cloud market by offering solely subscription-based services. However, this change comes with its challenges and implications for VMware's existing customer base and partner network.

Impact on Non-Invited Customers

The new Broadcom program is "invitation-only" which suggests a narrowing of the partner ecosystem, potentially leaving out several existing VMware partners. It's raising concerns for customers who have established relationships with partners that may not be included in Broadcom's new channel program. The immediate impact is uncertainty and the potential need for these customers to seek new partnerships or solutions to support their VMware-based infrastructures.

Licensing Changes: A Closer Look

Broadcom is shifting VMWare from perpetual licenses to subscription-based models. This transition impacts all VMware products and renewals for existing licensing will no longer be available. Customers have to adapt to a subscription model for both future purchases and renewals. This change requires existing customers to reassess their licensing strategies and likely face increased costs or operational adjustments.

Timeline and Transition Strategies

The transition to subscription models and the phasing out of certain products and licenses suggest a timeline that customers need to be aware of. While VMware still offers continued support on existing perpetual licenses, the shift towards subscription models indicates a window during which customers must plan their transition strategies sooner than later to avoid system downtime. This period is critical for evaluating current infrastructure, licensing needs, and the compatibility and benefits of alternative solutions like Microsoft Hyper-V.

Considering a Shift to Microsoft Hyper-V

For VMWare customers looking at the implications of this Broadcom acquisition and the subsequent licensing changes, considering alternatives such as Microsoft Hyper-V becomes a viable strategy. Hyper-V offers a cost-effective virtualization solution that could align with the needs of businesses looking to migrate away from VMware due to the acquisition's invitation-only uncertainties and/or potential cost implications. 

Considering a Shift to the Cloud

For those VMWare customers that were already considering doing-away with their physical servers altogether, this curveball from Broadcom is an ideal time to get a full cost analysis and evaluation of what cloud services would be the best solution for your workloads.

How Superior Managed IT Can Assist

Superior Managed IT is a Microsoft partner who can help with transition away from VMware. Whether it's Microsoft Hyper-V, or a fully cloud infrastructure strategy. With expertise in both VMware and Hyper-V environments, Superior Managed IT can provide guidance, planning, and implementation services to ensure a smooth transition. This support is invaluable for organizations navigating the complexities of changing their virtualization platform, ensuring minimal disruption to operations and leveraging the benefits of Hyper-V's virtualization solutions. Start exploring your options by calling 612-999-6200, or visiting our Contact Us page.